damaged pool, without a permit

[PJK03]

I was called about a house that is in escrow, which has a damaged pool. The LO wants to know if we can just not assign value to the pool. I told him that it appears there isn't a permit, so the no-value part might not be a problem, but I would have to explain what I observe when doing the inspection. EX. Huge dirty pond in backyard. Has anyone addressed this issue before? Won't the bank want the pool fixed, due to being a possible hazard? Any constructive comments would be appreciated.

 

[Mztk1]

You are estimating a value for the house and there is currently a pool on the lot that needs work. You have to consider the effect on value of the pool whether it is permitted or not. Non-permitted structures can and do affect value for better or worse.

If the lender wants you to omit the pool from the report that can only be done under a hypothetical condition, the report would then have to be made subject to the pool removal, and a value for the "as is" condition of the house (with the non-permitted pool) should also be disclosed.

If you appraise the house "as is" you MUST include the pool. If you appraise it under a hypothetical that the pool is not there, you CANNOT appraise the property "as is". Otherwise, you would be completing a "misleading report".

 

[PJK03]

Thanks Jim!

 

[CANative]

Trying to figure out what I should do with this one. Fiberglass inground with decking (LOL). Non-owner occupied SFR. Refinance.

 

[PJK03]

Hey Greg, so how will you handle this one? It looks like a mess.

 

[CANative]

I don't have a clue at this point. I need to call the county to see if there are any permits first.

I suppose a cost to cure could get me to an approximate "as is " value but I'm not sure if C2C is the way to go for a refinance deal. It might need a condition to correct.

I'm sick of getting these types of assignments. Sick, sick, sick, sick, sick. I'm getting worn out.

 

[The Warrior Monk]

I was called about a house that is in escrow, which has a damaged pool. The LO wants to know if we can just not assign value to the pool. I told him that it appears there isn't a permit, so the no-value part might not be a problem, but I would have to explain what I observe when doing the inspection.

I assume that you mean in-ground pool. In some areas safety issues will arise. In my area, if the Town gets involved in any way (issue a new CO, etc.), the pool issues will have to be handled prior to the issuance of a CO. If a safety issue arise, it will have to be fixed or filled in prior to the issuance of any documentation.

EX. Huge dirty pond in backyard.

Avoid saying this like the plague. It implies wetlands, which can open up a whole new can of worms.

 

[Mike Boyd]

Trying to figure out what I should do with this one. Fiberglass inground with decking (LOL). Non-owner occupied SFR. Refinance.

Holy Moly, batman! That looks like it was used to grow hydronponic marijuana !

Fill it in or fix it. Ask your client.